JUDGMENT

P. R. GOKULAKRISHNAN, J.

( 1 ) IN this Group of writ petitions the petitioners are industrial concerns which had taken loans from the respondent-Gujarat State Financial Corporation (hereinafter referred to as Corporation or the GSFC) and executed agreement and deeds of mortgage/pledge/hypothecation. They have made defaults in repayment of the loan and installments thereof and in meeting with their obligations to the respondent-Corporation. The respondent Corporation had therefore resorted to Sec. 29 (1) of the State Financial Corporation Act 1951 (Act No. 63 of 1951) where under the State Financial Corporation has been conferred a right to take over the management or position or both of the industrial concern as well as the right to transfer by way of lease or sale and realise the property pledged mortgaged hypothecated or assigned to the Financial Corporation.

( 2 ) THE petitioners have therefore challenged the constitutional validity of Sec. 9 (1) of the Act and in the alternative the action threatened or taken under that provision. Section 29 (1) of the Act reads as under: 291 Where any industrial concern which is under a liability to the Financial Corporation under agree